FD Calculator
Calculate fixed deposit maturity amount with different compounding frequencies. See interest earned on your FD investment.
What is FD Calculator?
An FD (Fixed Deposit) calculator computes the maturity value of a lump sum deposited at a fixed interest rate for a specified period. Fixed deposits are India's most popular risk-free savings instrument — banks and NBFCs pay guaranteed interest rates (currently 6-8% for 1-5 year tenures). This tool shows your maturity amount, total interest earned, and effective yield based on compounding frequency (quarterly compounding is standard for Indian banks). It helps you compare FD offers across institutions.
How It Works
Enter the deposit amount, annual interest rate, tenure, and compounding frequency (monthly, quarterly, half-yearly, annually). The tool applies the compound interest formula: Maturity = P × (1 + r/n)^(n×t). Quarterly compounding (the Indian bank standard) means interest is calculated and added to principal every 3 months, so future interest is earned on previously accumulated interest. The tool shows the exact maturity amount, total interest earned, and effective annual yield (which is higher than the stated rate due to compounding).
Common Use Cases
- •Comparing FD offers from different banks to find the highest effective return
- •Calculating the maturity value for planning specific financial goals and timelines
- •Understanding the impact of different compounding frequencies on final returns
- •Planning FD laddering strategy by calculating maturity values at different tenures
- •Comparing pre-tax and post-tax FD returns for tax-bracket-aware investment decisions
- •Calculating interest income for quarterly advance tax payment estimation
Frequently Asked Questions
How is FD interest calculated?▼
FD interest is calculated using compound interest formula: A = P(1 + r/n)^(nt), where n is the compounding frequency.
How does compounding frequency affect an FD?▼
More frequent compounding produces a slightly higher maturity value for the same nominal rate. Most Indian banks compound quarterly on standard deposits. The effective yield on a quarterly-compounded 7% deposit is about 7.19%.
What is the difference between a cumulative and a non-cumulative FD?▼
A cumulative deposit reinvests the interest and pays everything at maturity, so it compounds. A non-cumulative deposit pays interest out monthly or quarterly as income, which suits retirees but forgoes compounding.
What happens if I withdraw an FD early?▼
Banks typically apply a penalty of 0.5 to 1 percentage point and pay interest at the rate applicable for the period actually completed, not the rate you booked. Breaking a deposit shortly after opening it can therefore return very little interest.
Is FD interest taxable?▼
Yes, it is taxed as income at your slab rate in the year it accrues, even on a cumulative deposit where you have not received it. Banks deduct TDS above an annual threshold, which is higher for senior citizens. Submitting Form 15G or 15H prevents deduction where your total income is below the taxable limit.
Is my deposit insured?▼
In India, DICGC insurance covers deposits up to ₹5 lakh per depositor per bank, combining principal and interest across all your accounts at that bank. Spreading larger sums across banks keeps more of it inside the guarantee.
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